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Debt will spiral if Australia fails on climate change
New government planning says a failure to respond to climate change will cause Australia’s debt to spiral
It’s predicted that the nation’s cost of capital will increase by 100 basis points without a proper strategy to reach net zero.
The admission was found buried in an annex of analysis… and is likely the first instance a major government has published such a report.
Investors have been piling the heat on the Australian government recently… with many concerned about the country’s continued reliance on coal… with Sweeden’s central bank recently dumping its bonds with two states.
The Climate Bonds Initiative says “it’s a recognition of what’s going on in the world… and investors are becoming very conscious of climate risk”.
Countries rights around the world are readily adopting net-zero strategies… including fellow fossil fuel exporters, Saudi Arabia and the UAE.
But Australia’s plan will see the country only cut the number of greenhouse gases being produced by a third… while also being dependent on yet to be developed eco-technologies.